We are excited to announce that ParaFi Capital, a DeFi-focused investment firm, has invested in the Bancor Network Token, BNT. This strategic investment aims to further Bancor’s mission of enabling global, permissionless on-chain liquidity.
Santiago Roel Santos, partner at ParaFi Capital, said: “We believe Bancor v2 is a step function improvement in the automated-market maker (AMM) space. With trade volume and liquidity rapidly moving into AMM-based markets, we believe Bancor is uniquely positioned to benefit from this underlying market shift. We are thrilled to be involved with the Bancor ecosystem during the protocol’s next phase of growth.”
Nate Hindman, head of growth at Bancor Protocol, said: “With their deep experience in DeFi and institutional markets, ParaFi’s involvement will bring substantial expertise as we prepare to scale Bancor v2, release the BancorDAO and deploy BNT Liquidity Mining.”
Bancor’s Path to Decentralization & Growth
1. Bancor V2
At the time of writing, Bancor v2 is in beta with two pools live, LINK and REN, each with $1M temporary liquidity caps. The pools are undergoing stress-testing with limited supply — and early results are promising: v2 pools offer the lowest slippage and competitive prices in the DEX market with only a fraction of the liquidity.
As we prepare to scale Bancor v2, ParaFi is providing hands-on feedback on the AMM model and usability for both retail and institutional users.
2. BNT Liquidity Mining
ParaFi brings a wealth of DeFi expertise and they will be involved in designing and voting on the model for BNT Liquidity Mining, whereby users earn BNT for providing liquidity to Bancor pools. BNT Liquidity Mining will be among the first Bancor Improvement Proposals (BIPs) to be voted on by the BancorDAO.
About ParaFi Capital
ParaFi Capital is a crypto-asset investment firm with a fundamental, multidisciplinary approach to investing in the blockchain and decentralized finance ecosystem. The ParaFi team has deep finance and technology backgrounds with over two decades of cumulative institutional investing experience at leading asset management firms KKR, TPG, and JPMorgan. ParaFi’s investment approach focuses on digital assets that address tangible use cases, demonstrate signs of product-market fit, and exhibit compelling crypto-economic models. ParaFi’s backers include leading institutional allocators, including Bain Capital Ventures, Galaxy Digital, and Dragonfly Capital Partners.
Bancor is an on-chain liquidity protocol that enables automated, decentralized exchange on Ethereum and across blockchains. The protocol is made up of a series of smart contracts designed to pool liquidity and perform peer-to-contract trades in a single transaction with no counterparty. Users add liquidity to automated market makers in exchange for trading fees, voting rights in the BancorDAO and — pending a community vote — BNT liquidity mining. Since 2017, Bancor has processed billions in volume across thousands of tokens, with millions in trading fees generated by liquidity providers.
- Bancor Docs
- Breaking Down Dynamic Automated Market Makers
- Designing Capital Efficient AMMs in Bancor V2
- Incentivizing Network Liquidity with BNT Liquidity Mining
- What Sets Bancor Apart From Other DEXs